Education Loan & Scholarship
Education loans are very important, especially for students desiring to pursue higher education, professional courses, or studies abroad. They can be a real game-changer for many families and students, bridging any gap between financial constraints and academic aspirations.
Most top academic institutions, professional courses, and study abroad programs have very high tuition fees that may not be affordable for every family. An education loan allows students to access expensive professional courses and study abroad programs based on merit and career goals rather than purely on affordability.
Bearing the full expenses of higher education upfront can put too much strain on a family's finances. Education loans let families spread the cost over several years, helping avoid selling assets or dipping into savings while offering a structured, manageable way to fund education.
Education loans are an investment and not an expense. By enabling students to pursue professional courses or higher education, loans enable students to gain better knowledge, skills, and credentials that enhance employability and future earning potential.
Studying abroad can be financially burdening due to tuition, travel, accommodation, and living expenses. Education loans make studies abroad feasible, opening doors to international exposure, better job prospects, and access to advanced research opportunities.
Require collateral such as property or fixed deposits. Higher loan amounts (up to βΉ1-2 crore) with lower interest rates.
No collateral required. Loan amounts range from βΉ50,000 to βΉ20 lakh with slightly higher interest rates.
Covers tuition, travel, accommodation, and living expenses for international education.
Subsidized interest rates with government support for students from economically weaker sections.
For skill development programs and professional certifications with quick processing.
Additional funds on top of existing education loans for unexpected expenses.
When considering an education loan, one of the most crucial aspects to evaluate is its durationβthe period over which debtor is required to repay the borrowed amount. The duration determines how much debtor will have to pay each month, how long will the debtor remain in debt, and how much interest will accumulate over time.
This is the time student is enrolled in educational program. During this phase, debtors are usually not expected to make full EMI payments.
After course completion, lenders offer additional 6 to 12 months grace period before EMI repayments start.
Once moratorium ends, actual loan repayment tenure starts with regular EMI payments.
Higher loan amounts typically come with longer repayment periods to make EMIs reasonable and manageable for borrowers.
Professional courses like law, medicine, or MBA tend to have lengthier durations because they require higher investment and offer higher earning potential after completion.
Different banks and NBFCs have different maximum tenure limits. Government banks like SBI or Bank of Baroda may offer longer tenures, while NBFCs like Propelld or Avanse may offer flexible but shorter tenures.
Lenders assess debtors' future earning potential based on the college, course, and job market to determine how much time you might need to comfortably repay.
Interest rates are a vital aspect of education loans because they basically determine the total repayment amount and affect monthly installments. Understanding how interest is calculated, the types of rates offered, and the factors influencing them helps borrowers make informed borrowing decisions.
Fixed rates remain constant throughout the loan tenure. They offer predictable monthly EMIs, which helps hugely in budgeting and planning.
Floating rates vary based on market conditions, lender policies, or benchmark rates. Initially may be lower than fixed rates.
Secured loans typically have lower rates compared to unsecured loans because they involve collateral.
Offering fixed deposits, property, or other assets can considerably lessen the interest rate.
A financially stable co-applicant can considerably help secure lower interest rates.
Loans for professional courses or premier institutions may attract slightly different rates.
Government banks, private banks, NBFCs, and specialized institutions offer different interest rate structures.
Includes State Bank of India, Bank of Baroda, and Punjab National Bank.
Leading banks: HDFC, ICICI, Axis Bank, and Kotak Mahindra.
Leading NBFCs: Avanse, Propelld, and InCred.
Digital-first approach with quick processing.
Scholarships play a role similar to education loans in making education more affordable, accessible, and rewarding for students. They represent recognition of merit, talent, and potential.
Scholarships significantly reduce the cost of education by covering tuition fees, books, accommodation, and living expenses.
Makes education accessible to students from varied socio-economic backgrounds who might otherwise be unable to afford quality education.
Merit-based scholarships recognize outstanding talent and stimulate students to perform well in their studies.
Recognize students with extraordinary academic, artistic, or extracurricular performance. Rewards hard work and motivates continued achievement.
Assist students from economically weaker sections. Bridge the financial gap and provide equal educational opportunities.
Funded by central or state governments to make education accessible. Include schemes like AICTE Pragati, UGC Fellowships, and state merit scholarships.
Offered by companies like Tata Trust, Reliance Foundation, and Fortis Healthcare. Often include mentorship and internship opportunities.
Support students studying abroad. Include Chevening (UK), Fulbright (USA), DAAD (Germany), and Australia Awards.
Offered by institutions like Manipal, GITAM, and VIT. Cover tuition fees and provide mentorship support.
Scholarships in India are offered by various providers including central and state governments, universities, private corporations, NGOs, and international organizations. Each category has unique features and benefits.
Central government scholarships are an important source of educational support in India. Funded by national bodies such as the University Grants Commission (UGC), the Ministry of Education, and the All India Council for Technical Education (AICTE), these scholarships promote social inclusion, academic excellence, and innovation. They cover tuition fees, research costs, living expenses, and other academic necessities.
Exclusively for female students in technical courses like engineering, covering tuition, study materials, and project work.
Rewards extraordinary academic performance in school and higher education, covering tuition fees, books, and more.
Department of Science & Technology scholarship supporting students pursuing innovation and research in science and technology.
For postgraduate and doctoral students, providing research grants, stipends, and sometimes hostel fees.
Note: Central government scholarships are often merit-based or merit-cum-need-based, playing a crucial role in fostering national talent and providing access to education for students from economically weaker backgrounds.
State government scholarships in India are administered by individual states to support local students in pursuing professional courses such as medicine, engineering, law, and management. These scholarships promote equity, encourage meritorious students, and support economically disadvantaged communities.
Colleges and universities offer scholarships to attract meritorious students and encourage research. These scholarships may be need-based, merit-based, or talent-specific, covering tuition fees, research projects, living expenses, and additional allowances for extracurricular achievements.
MAHE offers four types of MBBS scholarships:
Eligibility: 80% aggregate in PCB (Class 12). Must maintain high performance throughout MBBS course.
Scholarships across disciplines with innovation project support
Need and merit-based with research guidance
Engineering focus with internship support
Private and corporate scholarships are offered by companies, industry leaders, and corporate foundations as part of CSR initiatives. They reward merit, support economically disadvantaged students, and develop professional skills aligned with industry needs.
CSR initiative supporting meritorious and economically disadvantaged MBBS students in India. Bridges financial constraints with quality medical education access.
Scholarships ranging from βΉ50,000 to βΉ1,00,000 per annum covering tuition, examination fees, and academic costs.
EWS students across engineering, medicine, management
Merit-cum-need for medicine and engineering
Science, technology, management focus
Management, engineering, medical courses
NGO scholarships uplift students from economically disadvantaged families, marginalized communities, and underrepresented groups. Unlike government scholarships, NGO scholarships are more flexible, focusing on social and economic backgrounds along with merit.
β Focus on disadvantaged social groups
β Coverage includes tuition, books, hostel
β Mentorship and soft skills training
β Career guidance and internships
International scholarships are offered by governments, universities, foundations, and organizations worldwide to help students pursue education abroad. They promote global collaboration, cultural exchange, and equitable access to quality education.
UK government-funded scholarship for one-year master's degrees at British universities
Fully funded master's and doctoral study opportunities to international students
Funds students from developing nations to pursue higher education in Australia
Grants for studying, training, and internships in European Union nations
Fully funded master's, PhD, and research programs in Germany
For Commonwealth countries to study in UK and member nations
β Tuition fees
β Travel costs
β Living expenses
β Health insurance
An education consultancy like Bodmas Education Services can play a critical role in helping students secure an education loan or scholarship. Support offered goes far beyond just guidanceβit streamlines the entire process, reduces stress, and improves the chances of approval.
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